Sunday, April 14News That Matters

Mutual Funds

Birla Sun Life Medium Term Plan Fund – MF Review

Mutual Funds
Birla SL Medium Term Fund is Debt fund Launch date - 25 Mar 2009 Minimum Investment Rs 5000 Exit Load - 2% for redemption within 365 days     &     1% for redemption between 366 - 730 days Expense ratio - 1.46% ( 31-3-2014)   Funds Performance over past 5 years   (updated on 9/7/2014)   AUM 1 year 2 year 3 Year 5 Year             Birla SL Medium Term - RP (G) 2223 9.9 10.9 10.7 9.1   Portfolio of this Fund Company Instrument Credit Rating % Assets DLF Debenture A 10.76 RKN Retail Pvt. Structured Obligation A 9.29 IOT Utkal Energy Services Structured Obligation AAA 5.67 Tata Motor Finance Debenture AA 5.45 Sterlite Technologies Debenture A+ 4.76 TRIL Infopark Structured Obligation A 4.55 Rural Electrification Debenture AAA 4.48 Power...

Birla Sun Life Short Term Opportunities Fund – MF Review

Mutual Funds
Birla Sun Life Short Term Opportunities Fund is  Ultra Short term Debt Fund / Credit Opportunities Fund Launch Date - 27 June 2008 Minimum Investment - Rs 5000 Exit Load - 1% for redemption within 1 year Expenses - 1.14 % ( 31-3-2014)    Returns AUM 1 year 2 year 3 Year 5 Year    (Rs in Crore)         Birla SL Short Term Opp-RP (G) 2520 9.5 10.8 10.5 9.1   Portfolio of this Fund ( as on 09/07/2014) Company Instrument Credit Rating % Assets Rural Electrification Debenture AAA 14.49 TRIL Infopark Structured Obligation A 7.58 LIC Housing Fin. Debenture AAA 6.6 Power Finance Corp. Debenture AAA 6.13 Power Finance Corp. Floating Rate Notes AAA 5.84 Tata Motor Finance Debenture AA 3.08 Sterlite Technologies Debenture A+ 2.83 GSPC Distribution Networks St...

Fixed Maturity Plans (FMP) – Good Tax efficient option for Investors

Mutual Funds
What is FMP (Fixed Maturity Plan) An FMP is a closed-end mutual scheme that has a fixed tenure and invests in fixed-income securities. It invests in debt securities in such a way that they mature a day or two or few days before the FMP itself matures. Investments:  FMPs invest in fixed income instruments like CDs, CPs, money market instruments, corporate bonds; debentures of reputed companies or in securities issued by Government of India and fixed deposits.  Effective August 2011, an FMP needs to give an indication of how its portfolio would look like. It has to give upper and lower limits of instruments in which it intends to invest, as per their credit rating, under various asset classes like CDs, CPs, securitized debt and so on. FMP Returns –  Now, Mutual fund companies are not allowe...

Earn more with DIRECT plan of Mutual Funds

Mutual Funds
From Jan 2013, Direct Plan for Mutual funds are in the market. In the first month, people were sceptical if there is going to be much difference in returns on Standard Plan & Direct Plans of Mutual Funds. Here is the NAV Comparison of some MF under Standard Plan & DIRECT Plan over last 1 year So, fromt the table you can see that you can see the Savings made by DIRECT Plan of Funds over last 1 year.   A.  What is Direct Plan of Mutual Funds? From 01-Jan-2013, Investors have the option of investment in the Direct Plan option of mutual funds. DIRECT Plan STANDARD Plan you invest directly with Mutual Fund Company (AMC you invest through mutual fund agent (individual / bank / online) The DIRECT PLAN of mutual fund scheme has lower expense ratio as compare to STANDARD Plan as...

Mutual Funds – Taxation Aspects

Mutual Funds, Taxation
In this post, I will explain the Taxation aspects of Income / Returns from Mutual Funds. The taxation depends on type of Mutual fund scheme you have invested in.  The taxation will be different for equity schemes, and non equity schemes ( for e.g debt schemes, money market etc) Broadly, there can be following 2 type of Income from Mutual Funds: Dividend Capital Gains A. Dividend Received  - Tax Free in hands of investor Any dividend received from Mutual Funds is exempt from Tax in hands of investor. So , if you have selected Dividend Option while investing in MF, then any dividend received is tax free for you. Actually, the interest on such dividend is already paid by Mutual fund company via Dividend Distribution Tax (DDT) . Paying such tax impact returns of your MF scheme. DD...

CPSE ETF Details & Should you invest in this PSU ETF?

Mutual Funds
What is CPSE ETF CPSE ETF (Central public sector enterprises ETF) is the new ETF launched by government which is comprised for 10 Bluechip PSU companies. Its objective is to raise money from public & invest in the shares of PSU companies which are part of this ETF. Through this ETF government is targeting to raise Rs 3000 crores. The NFO is closing on 21-Mar-2014. What is ETF ETFs are like mutual funds which can be bought and sold on stock exchanges.  It is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange What is CPSE Index comprised of? CPSE Index has been created by including companies that meet the following criteria: Owned 55% or more by the Government and listed on the NSE Large PSUs (those having m...

Top 10 Reasons to Invest via Mutual Funds

Mutual Funds
Mutual funds are one of the best options available to small retail investors to diversify their investment and earn superior returns.  Through Mutual Funds, you can invest in various types of products - for e.g.  Equities, Bonds, Fixd Income, Gold, Commodities companies, Index etc. In this post, I have tried to list some major benefits of investment in mutual funds   1) Professional Expertise As we can’t be experts in everything, so it is better to leave certain things with professionals.  Fund managers are highly qualified & experienced, track the market activities closely, speak to company management on on-going basis, understand the economic & sector indicators better and are in better position for investment decision making. For e.g. Prashant Jain of HDFC Mutual Fund is...

Best Performing Gold Mutual Funds in India

Mutual Funds
Comparison of Gold Mutual Fund Returns Currently there are 10 Gold Funds in the market and comparison of returns of gold savings funds : ICICI Prudential Gold Savings Fund HDFC Gold Fund SBI Gold Fund Kotak Gold Fund Reliance Gold Savings Fund Quantum Gold Savings Fund Religare Invesco Gold Fund Axis Gold Fund Birla SunLife Gold Fund Canara Robeco Gold Savings Fund The returns of all ETFs are similar as these are passive funds and track gold price movements. However, the difference between returns are because of effective utilisation of cash (5-10% of portfolio)  

Best Performing Gold ETF in India

Mutual Funds
Comparison of Gold ETF Returns Currently there are 13 Gold ETF in the market and comparison of returns of gold ETF : UTI Gold Exchange Traded Fund (ETF) Quantum Gold Fund Kotak Gold ETF GS Gold BsES ETF R* Shares Gold ETF Canara Robeco Gold ETF SBI Gold ETF Motilal Oswal MoST Shares Gold ETF Reliagre Invesco Gold ETF Birla SunLife Gold ETF IDBI Gold ETF HDFC Gold ETF Axis Gold ETF The returns of all ETFs are almost same as these are passive funds and track gold price movements.

Comparison of Returns of Gold ETF vs Gold Mutual Funds vs e-Gold

Mutual Funds
In my earlier post, I have compared the features of Gold ETF, Gold Mutual Funds & e-Gold. https://wealth18.com/comparison-of-gold-etf-vs-gold-mutual-funds-vs-e-gold-which-is-the-best/ In this post, I have quickly compared the Returns of Gold ETF, Gold Mutual Funds & e-Gold. Assumption for this calculation Intial Amount invested - Rs 1 lakh Gold prices appreciating 10% every year Based on the above comparison, e-Gold is very cost effective as compared to Gold ETF & Gold Mutual Funds.